Why You Need an Attorney When Starting a Business

There are several legal requirements in the process of starting a new business. A business attorney in Santa Rosa can help you understand and fulfill these requirements. Business attorneys help their clients navigate the complex legal system. A business attorney can advise you on how to avoid legal liability and help ensure legal compliance.

Here are some tasks a business attorney can assist you with when setting up a new business.

Choosing the Right Business Structure

The proper business structure can reduce personal risk for the business owner. The wrong business structure, on the other hand, can expose them to legal risks.

The business structure you choose can affect day-to-day business operations, tax liability, and earning potential. Some common types of business structures include sole proprietorship, partnership, limited liability company, and corporation. A business lawyer can help you weigh the pros and cons of each type so that you can choose the right structure for your business.

Pulling Licenses and Permits

Depending on the business structure and type, you may be required to register your business with your city, council, or state for it to be recognized as a legal entity. However, even if you need not register your business, the state may require you to obtain business permits or licenses. An attorney can help you determine the licenses you need, fulfill licensing requirements, complete paperwork, and apply for a license or permit.

Drafting and Reviewing Contracts

When starting a business, you will get into several contracts with suppliers, partners, employees, and investors. Therefore, it is crucial that you have a business attorney review contracts before signing on the dotted line.

The contract language is complex. An experienced business attorney can help you understand agreement terms and conditions that outline the rights and responsibilities of the parties to the contract. They can also draft contracts that protect your interests.

If you are renting commercial space, your attorney can read the fine print of the commercial lease agreement before you sign it.

Raising Funds

Your business lawyer can help you understand funding requirements and choose the right sources. In addition, they can assist you in developing an effective business plan that accurately communicates your business’s vision, mission, and USP. A good business plan that covers all the bases increases your chances of getting funded.

In their eagerness to raise capital, many inexperienced entrepreneurs fall into the clutches of predatory investors. They sign bad agreements that need to be revised in favor of the investor. A business attorney can help you avoid fundraising traps. They can review contracts and help you identify red flags so that you can make informed decisions.

Johnston & Associates Law is a leading law firm in Santa Rosa. Our ability to tailor legal solutions to meet the unique legal needs of businesses and individuals sets us apart from other Santa Rosa law firms. To consult an attorney, call (707) 545-6542.